3. Global environment can be de
defined as the environment about our
surrounding that influences world-wide
scale.
The global business environment can be
defined as the environment in different
sovereign countries, with factors
exogenous to the home environment of
an organization, influencing decision
making on resource use and capabilities.
4. Globalization is the process of international integration
amusing from the interchange of world views, products,
ideas and other aspects of culture.
Globalization is the process of interaction and integration
among the people, companies and governments of
different nations. It is a process driven by international
trade and investment and aided by information and
technology. This process has effect on the environment,
culture, political systems on economic development and
prosperity and on human physical well-being in societies
around the world.
From the above explanation we can say that globalization is
the integration or amalgamation of various cultures, style,
economic policies, and political views.
6. Improved of communication
Improved Transportation
Influence of Regional and International Agencies
Free Trade Agreement
Global Banking
The Growth of MNC
Influence of political culture
Expansion of culture
Expension of knowledge and knowhow
Global use of capital
Developing International Relation
7. Borderless
Liberalization
Free Trade
Globalization of economic activities
Connectivity
A composite process
A Multi-dimensional process
A top down process
Mobility
Cultural Diversity
8. 1. Change of Food Supply
2. Division of Labor
3. Less job security
4. Damage to the Environment
5. Cultural Impact
6. Power of WHO, IMF, and WB
7. Greater Mobility of Human resource across
the countries
8. Increasing influence of multinational
companies
9. Technological process
9. 1.Impact on Technology
2. Impact on Education
3. Impact on our culture
4. Modern Technology
5. Impact on politics
6. Impact on Family
7. Sports and recreation
8. Impact on agriculture
9. Impact on industry
10. Definition of MNC: - an enterprise operating in
several countries but managed one (home)
country. Generally any company or group that
derives a quarter of its revenue from
operations outside of its home country is
considered a multinational corporation.
A multinational corporation/company is an
organization doing business in more than o0ne
country. I other words it is an organization or
enterprise carrying on business in not only the
country where it is registered but also in
several other countries. It may also me termed
as International Corporation.
11. 1. Giant size
2. Huge Intellectual Capital
3. Operates in many countries
4. Large number of customer
5. Large number of competitors
6. Professional Management
7. Transfer of resources
8. Several Forms
13. 1. To increase market share
2. To secure cheaper premises and labor
3. Employment and health and safety legislation in other
countries may be more relaxed.
4. To avoid or minimize the amount of tax to be paid
5. To take advantages of govt. grants available
6. To save on cost of transporting goods to the market
place
7. To develop on international brand.
14. 1.Access to Consumers
2. Accesses to Labor
3. Taxes and Other Costs
4. Overall Development
5. Technology
6.Exports & Imports
7. Helps of MNCs
15. 1.Laws
2. Intellectual Property
3. Political Risks
4. Loss to Local Businesses
5. Loss of Natural Resources
6. Money flows
7. Transfer of capital
16. 1. MNC’s create opportunities for marketing the
products produced in the home country
throughout the world.
2. MNC’s helps to maintain favorable balance of
payment of the home country in the long run.
3. Home country can also get the benefit of
foreign culture brought by MNC’s.
4. It gives a boost to the industrials activities of
home country.
5. The create employment opportunities to the
people of home country both at home and
abroad.
17. 1. MNC’s transfer the capital from the home
country to various host countries causing
unfavorable balance of payment.
2. MNC’s may not create employment
opportunities to the people of home
country if it adopts geocentric approach.
3. As investment in foreign countries is
more profitable. MNC’s may neglect the
home countries industrial and economic
development.